Sheridan Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output quantities as shown below: Output in Units 1,000 2,000 3,000 4.000 5,000 6,000 7,000 8,000 9.000 10.000 Rent Expense Direct Materials $5,700 5,700 5.700 7,700 7,700 7,700 7.700 7,700 7.700 10.700 $4.070 6,140 8,010 8,280 10,350 12.420 14.490 16.560 18.630 23,700 h

Sheridan Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output quantities as shown below: Determine the relevant range of activify for this product. Relevant range to